Thursday, 2 June 2016

Inheriting money at a young age

As you may already know my dad died in 2007 when I was 15, leaving me an orphan after my mum died in 1997. In 2011, nearly 4 years after my dads passing i received my inheritance and for a 19 year old it was a lot of money. I won't go into detail about exactly how much it was but here's my experience of inheriting money at a young age and where I'm at financially 5 years on.

When my dad passed away unexpectedly during the summer holidays in 2007, everything became a blur, i didnt know how my life was going to carry on. I was on my own and even though our relationship was difficult at times he was still my dad and I loved him. After his funeral and the summer holidays finished i went back to my boarding school down south and just carried on with life. But back home in the north west my uncle (dads brother) had been left as my unofficial guardian and executor to my dads estate. 

Because we couldn't find a will his estate went into something called probate where a bloodline relative have to prove they are related inorder to be named executor of the estate. We had several solicitors try and call in everything of my dads assets, one solicitor went bankrupt and the last solicitor actually was acting illegally by not making me their client once I'd turned 18. So i then had to get my own solicitor who was fantastic. It was a very long and stressful time that I wanted to be over, I just wanted what was rightfully left for me. I wasn't prepared though for the amount of money i receieved.

Because of my age, my solicitor insisted that I speak to a few financial advisors and talk about the options i had interms of putting the money away so i couldnt spend it. I met with different people and things such as stocks and shares, ISAs etc where advised and i did take their advice and put some money away. But my main goal was to buy a house, I wanted my own home so even before any money was transferred Chris and I started viewing houses. A month or so after I'd received my final inheritance we moved into our home. 

With still plenty of money left I decided it might be a good idea to buy another property as a buy to let opportunity. So 5 months after we bought our house we bought a 2 bedroom mid-terrace near to the town centre and it rented pretty much straight away. But over the nearly five years we've rented it out we've had some horrendous tenants. I've been wanting to sell for a few years and i honestly think buying that particular house was a big mistake and we're putting it on the market.

So after 5 years where are we financially? Absolutely skint is the answer. Even though I've still got two houses I don't have any savings in the bank. A lot of the money that was left over after buying two houses was infact pissed away on clothes, holidays, cars and life as i was at uni and only had a part time job in retail. People have commented over the years with "You must be loaded" well not anymore. Being made redundant and having a child to look after has taken its toll. I sort of regret having money so early on in my life, i feel embarrassed that I can't do or buy everything I want to for my son.

So the moral to this long winded story...don't piss away money that's been left to you. Educate yourself on how to protect your money, don't be scared to treat yourself but don't go buying a £700 pair of Louboutins like I did...because you can't eat them.

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